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The Marriage of Mobile & Local: Driving Franchise Conversions

03/29/13

Michael Boland, Sr. Analyst, BIA/Kelsey

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Agenda

Mobile and Local: By the Numbers

Mobile Local User Behavior & Conversions

Best Practices and Mobile Strategies

Franchise Adoption: The time is Now…

1

2

3

4

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Mobile & Local: Where are We Now?

Sources: Query growth - Google internal data 2011; Tablet forecast - Forrester 2010

Apple iPad1

mobile searches have grown 5x in the

past 2 years

20% of search is mobile50% of mobile search is local

– compares to 20% on desktop

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2011 2012 2013 2014 2015 20160.0

20.0

40.0

60.0

80.0

100.0

120.0

54.961.6

69.277.1

84.0

85.6

19.7

30.7

46.0

63.7

85.9

113.4Desktop Mobile

In 2015, mobile local search volume will surpass desktop local search.

Bill

ions

Source: BIA/Kelsey

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Local vs. National Ad Spend in Mobile

2012 2013 2014 2015 2016 2017$0.00

$2.00

$4.00

$6.00

$8.00

$10.00

$12.00

$14.00

$16.00

$18.00

$2.03$3.11

$4.78$5.80

$6.90 $7.71

$1.22

$2.28

$3.90

$5.72

$7.20

$9.09

Non-location Targeted Location TargetedU

S$

Bill

ion

s

$3.25

$5.39

$8.67

$11.53

$14.09

$16.79

54%

38%

Source: BIA/Kelsey

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Mobile audiences primed for conversions

6

of smartphone shoppers

made a purchase in

store after looking up a business

on their smartphone

1/4of smartphone consumers

have

called a business

via their mobile phones after looking it up on their

smartphone

of smartphone shoppers

have made a purchase on

their smartphone

34%

Google/Ipsos OTX, “The Mobile Movement: Understanding Smartphone Users”

51%

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• Most U.S. Retail is Offline, but a Growing Portion is Influenced Online, in Mobile and Tablet.

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Mobile Ad Performance

• Localized mobile content and ads see higher engagement

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Driving Conversions at the Store Level

9

Calls Product awareness

Store traffic

Click-to-call Product Local Ads Location Extensions

• Content should contain actionable information to align with mobile user intent

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• Advertisers are adjusting to mobile usage realities by including localized calls to actions in mobile ads and websites

Source: Millennial Media

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Example: Radio Shack

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Optimized Mobile Presence is Vital

Source: Compuware, “Why the Mobile Web is Disappointing End-Users”. March 2011

51% more likely to purchase from retailers

85% increased engagement

40% would visit a competitor’s site instead because of a disappointing mobile experience

To boost performance:

To keep customers:

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Haven't heard of it12%

Heard of it; Don't know much

16%

Learned about it; Don't use

16%

Currently Using55%

Tried and Stopped 1%

• Franchises are using mobile marketing but there’s lots of room for growth.

Source: BIA/Kelsey

Figure 1. Franchise Use of Mobile Marketing

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Don't use but likely to in next 12 months

Don't use, and not likely to in next 12 months

Not sure

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

42.9%

35.7%

21.4%

Figure 2. Franchise intended use of mobile marketing

• Franchise use of mobile marketing will pick up: Now is the time

Source: BIA/Kelsey

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Thank You!

Any questions?

mboland@biakelsey.com@mikeboland